Policy Loans

A. What are the types of policy loans that I can avail of?
B. How can I make a policy “cash loan�?
C. What is the interest rate on policy loan?
D. What will be the effects of policy loan?
E. When do I pay my policy loan?

 

 

What are the types of policy loans that I can avail of?

Most plans except term coverage generate cash value. For your personal needs, you can make a loan against your policy provided that it has earned sufficient cash values.


  • Cash loan – Can be obtained up to a maximum of 80% of the cash values.

 

  • Premium Loan – If premium remains unpaid after the 31 days grace period and the policy has earned sufficient cash values, the premium may be charged as a loan against the cash value. If you opt for the Premium Loan Option as your Premium Default Option, this will be automatically done. Otherwise, please advise us through your Lifeplanner.

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How can I make a policy “cash loan�?

Submit Application for Policy Loans in duplicate copies with signature by the owner and all irrevocable beneficiaries and assignees (if any), the Policy Contract for endorsement, and any valid ID such as passport, driver’s license, company or professional ID.

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What is the interest rate on policy loan?

Policy loans, whether cash or premium loan, are charged with interest at the prevailing rate as approved by the Insurance Commission.

 

Interest is compounded annually if not paid.

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What will be the effects of policy loan?

In the event of a claim, unpaid loans are deducted from any amount payable to the beneficiaries. If at any time, the total amount of loan including interest exceed the cash values, the policy automatically terminates.

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When do I pay my policy loan?

You may repay your policy loan, in full or in part, any time. If the loan is not paid as of policy anniversary date, the accrued interest is added on the principal loan. You may request Sony Life to bill you for your outstanding loan.

 

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